TY - RPRT AU - Ketter, Laura AU - Morris, Todd AU - Yu, Lizi TI - A New Equilibrium: COVID-19 Lockdowns and WFH Persistence PY - 2025/Jun/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 17975 UR - https://www.iza.org/publications/dp17975 AB - This paper documents a robust link between COVID-19 lockdowns and the uptake and persistence of working from home (WFH) practices. Exploiting rich longitudinal data, we use a difference-in-differences strategy to compare office workers in three heavily locked-down Australian states to similar workers in less affected states. Locked-down workers sustain 43% higher WFH levels through 2023 — 0.5 days per week — with a monotonic dose–response relationship. Persistence is driven by adjustments on both sides of the labor market: employers downsize office space and open remote/hybrid positions, while employees relocate away from city centers and invest in home offices and technology. KW - COVID-19 KW - persistence KW - WFH KW - work from home KW - lockdowns KW - habit formation ER -